SCM

Lara Exploration Ltd. ("Lara" or the "Company") (TSX VENTURE:LRA) is pleased to
announce that it has signed a Letter of Intent to acquire 6,090 hectares of
mining licenses and that it has also claimed in its own right a further 6,200
hectares of exploration licenses, covering known sedimentary phosphate deposits
in the Bahia Inglesa district of Chile, on behalf of the Kiwanda Phosphate
Alliance.


Lara, on behalf of the Kiwanda Phosphate Alliance ("Kiwanda") has signed a
Letter Agreement with two related Chilean companies SCM Bahia Inglesa ("SCM")
and Compania Minera de Fosfatos Naturales Limitada ("Bifox") to acquire 6,090
hectares of mining licenses that were originally drilled for sedimentary
phosphates in the 1980's by the Chilean Government and from which SCM and Bifox
currently produce phosphate concentrates (with approximately 17% P2O5) on a
small scale. The option is subject to due diligence, completion of a Definitive
Agreement, cash payments and a sliding scale production royalty on the following
terms:




----------------------------------------------------------------------------
Date/Milestone       Payment US$     Conditions                             
----------------------------------------------------------------------------
Definitive Agreement 400,000         Date of signature                      
----------------------------------------------------------------------------
12 Months            3,000,000       Cash payment 12 months after date of   
                                     signature                              
----------------------------------------------------------------------------
24 Months            8,000,000       Cash payment 24 months after date of   
                                     signature                              
----------------------------------------------------------------------------
48 Months            2,000,000       Payable only if phosphate concentrate  
                                     (+30% P2O5) prices are greater than   
                                     US$200/tonne                           
----------------------------------------------------------------------------
Production royalty   2%              Payable on any production if phosphate 
                                     concentrate (+30% P2O5) prices are less
                                     than US$200/tonne                      
----------------------------------------------------------------------------
Production royalty   3%              Payable on any production if phosphate 
                                     concentrate (+30% P2O5) prices are     
                                     between US$200 and US$300/tonne        
----------------------------------------------------------------------------
Production royalty   5%              Payable on any production if phosphate 
                                     concentrate (+30% P2O5) prices are     
                                     greater than US$300/tonne             
----------------------------------------------------------------------------



Bifox and SCM will continue their current operations up to a total production of
200,000 tonnes (time measured from the date of signature of the Purchase Option
Agreement) of phosphate rock with approximately 17% P2O5 content and will have
an exclusive agreement to market and sell production by Kiwanda into the local
Chilean market for a period of 10 years. Kiwanda will have access to and use of
the laboratory and other facilities on-site for a period of 3 years, with an
option to purchase them at market prices. 


Kiwanda has also applied for 6,200 hectares of exploration licenses adjacent to
and covering extensions of the SCM and Bifox deposits. Under the terms of the
agreement between Lara and Kiwanda (see Company news release of January 10, 2012
for details), the combined Bahia Inglesa property will become a Designated
Project, whereby Kiwanda will invest US$5 million over a four-year period (US$1
million of which is a firm commitment) in exploration and development to raise
its interest to 65%. Kiwanda may then raise its interest to a total of 75% by
delivering a Feasibility Study as defined by NI 43-101 within a further two
years (subject to spending a minimum of US$2 million per year).


Quality Control

Andre Gauthier, Lara's President, a member of the Quebec Order of Engineers, is
a Qualified Person as defined by National Instrument 43-101 Standards of
Disclosure for Mineral Projects and is responsible for the preparation and
verification of the technical information in this release.


About Lara

Lara is an exploration company following the Prospect Generator business model,
which aims to minimize shareholder dilution and financial risk by generating
prospects and then exploring them in joint ventures funded by partners. The
Company currently holds a diverse portfolio of prospects and deposits primarily
in Brazil and Peru where it has signed agreements for fifteen joint ventures and
three Strategic Alliances. Lara's common shares trade on the TSX Venture
Exchange under the symbol "LRA". 



FOR FURTHER INFORMATION PLEASE CONTACT: 
Lara Exploration Ltd.
Chris MacIntyre
VP Corporate Development
+1 416 703 0010
info@laraexploration.com
www.laraexploration.com

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